Dividend Income Update – October 2013

Another month has passed by, and it’s time for me to post an article on my favorite subject: dividend income. The reason why I love to post articles on dividend income is because it’s pure numbers. It’s hard to argue the success of long-term dividend growth investing when you can slowly and surely see dividend income rise over time and get closer to covering one’s expenses.

Although October’s dividend tally wasn’t quite as impressive as September’s record breaking haul, it’s still a marked improvement upon what I was able to achieve during the same month last year. And that’s really what these updates are designed to show: constant improvement year after year. And the ease of improvement is really what allows dividend growth investing to shine; it’s easy to improve on dividend income totals when you’re reinvesting ever higher dividends back into investments which will yield, well, ever higher dividends. The organic growth of the dividends themselves via the underlying companies raising the quarterly payouts is icing on what amounts to a cake of reinvestment. It’s hard not to be gushing cash over the long haul if you’re following this strategy.

I hope these monthly dividend income reports provide inspiration for any investors out there that are just starting out. It’s easy to see these payments rising month after month and it shows that it’s possible to one day pay for monthly expenses with dividends, which would provide an investor opportunities and freedom to pursue other interests than full-time work. Without further ado:

October 2013 Dividends Received

  • The Coca-Cola Company (KO) – $22.40
  • Illinois Tool Works Inc. (ITW) – $14.70
  • Altria Group Inc. (MO) – $38.40
  • Philip Morris International Inc. (PM) – $94.00
  • American Realty Cap. Prop. Inc. (ARCP) – $7.58
  • Realty Income Corp. (O) – $12.73
  • Medtronic, Inc. (MDT) – $10.36
  • Sysco Corporation (SYY) – $8.12
  • The Bank of Nova Scotia (BNS) – $12.61
  • Raytheon Company (RTN) – $13.75

Total dividends received during the month of October: $247.95

Solid month, and solid progress for my Freedom Fund. This represents real cash money I didn’t have to go to work and earn, and this was capital I was able to reinvest with almost no effort on my part. This $247 will surely exponentially grow over the decades as it buys income-producing assets today which will themselves eventually buy even more income-producing assets in the future. It’s a little mutating, multiplying army of dividends that grows all by itself. Truly the gift that keeps on giving!

This was a big change from the $154.92 I earned in October of last year. That’s an improvement on the order of 60.1%. I’ll gladly take it.

I was able to cover over 13% of my expenses over the month of October via passive dividend income. A far cry from the 100%+ number I’ll need to consider myself financially independent, but progress is made every single day. It’s all about staying consistent and persistent.

My goal is to receive $3,500 in dividends during the year of 2013. With October now recorded in the books, I can see that I’ve received $3,135.27 in dividends so far this year. I’m quite confident that I’m going to exceed my goal by a healthy margin by the end of 2013. I’m very excited to be in the position to smash through passive income goals like this.

I’ll update my dividend income page to reflect October’s dividends.

Full Disclosure: Long all aforementioned securities.

How was your October? A fantastic month of dividends? 

Thanks for reading.

Photo Credit: sscreation’s/FreeDigitalPhotos.net   

Edit: Corrected improvement figure.

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60 Comments

  1. Congrats on the progress DM! Great going. I’m hoping I can get to $3k in US portfolio dividends for the year. I’ll be plenty happy if I can achieve that. Looking forward to a juicy BP dividend this quarter, as I’m sure you probably are as well :). Best.

  2. Hey Jason, you had a great month as usual! Just a quick math correction for you: instead of a 37.5% increase, you actually had a 60.1% increase over last year! As an aside, the denominator is always the prior year when looking at the year over year increase. That being said, you’ve really got the ball rolling on your dividends and smashing through a goal is always fantastic. Time to start thinking about next years goal and what you plan on accomplishing!

  3. As writing2reality wrote above, your actual yoy increase for the month of October is 60.1%. Too see the money in the brokerage account coming in each month is what it is all about. As the snowball gets bigger and bigger, the dividends increase more and more..

  4. Nice income.You surly will past your goal this year. I can’t wait to hear about your next year goals.

    I as well had a great month. Well every month has been great since I just started lol. 🙂

  5. Nice job. october is pretty good for me $267. November looks pretty bleak at $93 but December is looking like my best month ever as its projected to be $339, and that’s if I don’t make any more purchases!

    The November quarter is a tough one for me. I also have a much more concentrated portfolio than you do in that it’s currently only 13 holdings. I actually don’t intend to increase it more than 15 ever but just personal preference. The lower amount of holdings, however, do make for pretty sporadic income as you can see from what I said previously wrote but that doesn’t bother me in the least. I am very good at budgeting and if in retirement I have one month that covers a quarter of expenses I’d be just fine.

  6. Congrats on the dividend income, Mantra. Im sure you will be cruising past your goal of $3500 in annual dividends.

  7. Great progress DM. Hey, what’s your take on rumours about AT & T buying Vodafone ? Some analysts predicting Vodafone could be valued at £3.40 per share if takeover occurs.

    I own Vodafone and AT & T.

    Reg, Jon from UK

  8. What a fantastic month DM…..your cruising the financial highway and missing every exit (the bad ones that lead to spendyville). Keep up the tempo, the motivation. Your financial freedom may seem distant but in comparison to you age/life to date it is much shorter than the miles you have already travelled on your journey so far.

    We had a disappointing month, we only managed to save 47% of our income, we had a bunch of one time expenses including a wedding (we gave a generous gift). We still managed to save $6500 though, cannot wait until we start buying some blue chip shares and get our dividend train rolling, currently we have to set aside our funds for a property investment otherwise it would be rolling already.

  9. Almost $250 in a typically low paying month is pretty great. I hate the Jan, Apr, July, Oct updates after having such awesome payouts in Mar, Jun, Sept, Dec. It’s a bit of a let down. But it’s great going into the M,J,S,D payouts knowing you’re about to blow it out of the water. Keep up the good work. I’m still coming after you so don’t let your guard down.

  10. Great job! The last month of the quarter is always great. You’ll breakthrough your $3,500 soon. December is going to be a big month too. We had $530 in October. Not bad, but I’m looking forward to December.

  11. Excellent update. As Chowder says over on his Project $3M blog, as long as month vs. month and year over year gains are being made, the portfolio is a success. There’s no doubt you’re succeeding. October is a slow month for me, this time ringing in at $140.20, but November will more than double that and December will be a 4x multiplier.

    This truly is a method of investment that provides that nice little “instant gratification” we often need to press forward when the goals are measured in years and decades, rather than hours and days.

  12. I think, you will achieve your goal – 3,500 USD at the end of 2013! Great work!
    In Oktober 2013 I have received 10,53 EUR from MO auf 8,59 EUR from ATT – total: 19,12 EUR
    Only 7,7% from your dividend income – but I´ll work hard for more…

    Nice regards!
    D-S

  13. Roadmap2Retire,

    I appreciate the support. I also think I’ll exceed my goal by a healthy margin. December’s payout alone will exceed my goal so November is all gravy. 🙂

    I see you had a great October as well, hitting over $400 in passive income. That’s awesome. Keep up the great work!

    Best wishes.

  14. Integrator,

    Definitely looking forward to that juicy BP dividend! 🙂

    I’m sure you’re making great progress with the U.S. dividend portfolio, but your total dividend tallies are extremely impressive. I can only hope to attain the success you’ve achieved so far.

    Cheers!

  15. w2r,

    Thanks so much for catching that! I hate making mistakes. That’s what I get for multitasking; I was finishing this article as I was talking to my aunt over the phone trying to finalize travel plans for Christmas (I’m going to Michigan for the holiday). I corrected that mistake this morning.

    Yeah, I’ve got to start thinking about my goal for 2014. I’ll probably set my goal for $5k in dividends during the year of 2014. I think that would be aggressive, but attainable.

    Looking forward to seeing more of your updates as you catch up to now. You’re doing great!

    Take care.

  16. Freedom Dividend Investor,

    Hey, welcome to the blogging club! I hope you see great success with your blog, as well as your investments! Great looking portfolio.

    Best regards.

  17. Investing Pursuits,

    Thanks for catching my error. I was trying to finalize this post and talk to family over the phone all at the same time. My bad. 🙂

    You’ve got it right: as the snowball gets bigger and bigger, the passive income it throws off also gets bigger. This is where compounding really works its magic, as capital begets capital.

    Cheers!

  18. FFdividend,

    Congrats on a great month yourself. 🙂

    Thanks for the support. I’m already formulating some goals for next year and I’m excited for what 2014 brings us all.

    Take care.

  19. Took2Summit,

    Nice! You had a fantastic October. Congratulations. 🙂

    I’m with you in regards to budgeting. I don’t think monthly dividend takes need to be somehow evened out. There’s nothing wrong with fluctuations in income as long as you’re fairly intelligent with budgeting and know what to do with a surplus or a deficit. Surely. being successful at dividend growth investing would almost require that you’re also fairly good at budgeting.

    Keep up the great work.

    Best wishes!

  20. Kinski,

    Hey! Thanks for stopping by from Finland. I appreciate the European support. 🙂

    I hope your strategy is working out as well, and I hope that life is treating you otherwise very well in Finland.

    Best regards.

  21. FI Fighter,

    Looks like you had a great trip to Chicago. Really love that town. Good food. 🙂

    Congrats to you too on all of your success. Keep it up!

    Best wishes.

  22. Jon,

    To be honest, I haven’t really heard or read anything concrete relating to such an acquisition. The only thing I’ve really read has been rumors, and I don’t really pay attention to them.

    I wish I could give you more insight. However, if something is announced I’ll be extremely interested and surely post my thoughts.

    Cheers!

  23. KM,

    Thanks so much! I really appreciate the support. I love the analogy there to the financial highway; I couldn’t agree more! Taking a wrong exit down the path to Expensivehouseville could surely derail even the best laid plans.

    You had a great month. I wouldn’t be disappointed at all with 47%. That’s still more than 10 times the national average, so congrats to you! However, I do know how it feels to not hit crazy numbers when you’re used to 60% or higher. Sometimes I think we’re numb to our own success when we fall a little short. I like to think we’re shooting for the moon, but even stopping halfway there puts us in outer space.

    Best wishes.

  24. Pursuit,

    I know you’re coming after me! And I’m quite sure you’ll pass me up in no time. You’re doing awesome. That huge income combined with the monster savings rate puts you in a great spot. Keep it up.

    I hear you on the lower months. However, as you mention having a low month just makes it even more special and exciting to knock it out of the park in a September or December payout.

    Take care.

  25. rb40,

    Hey, thanks for stopping by. I appreciate all of your support. I really do! 🙂

    Over $500 in October is awesome. That’s killing it. It’ll be a couple years or so before I’m hitting numbers like that.

    I’m also looking forward to December. Should be a monster month for many of us.

    Cheers!

  26. Exponential Dividends,

    Thanks. I’m definitely giving it my best shot.

    Congrats to you too on a pretty solid month. It looks like you had some great companies pay out, with GE, PM and the like. Keep up the great work.

    Best wishes.

  27. D-S,

    Thanks. I appreciate the kind words.

    You’re off to a nice start, and owning a piece of companies like Altria and AT&T is a fantastic spot to be in. The progress happens quickly!

    Best regards.

  28. Anonymous,

    Absolutely. I measure my progress in the same way. YOY changes, especially when comparing apples to apples (the same month or quarter) is really the best metric for tracking progress and success. If I’m able to make improvements YOY during the same month then I definitely consider that a success.

    I agree that it’s important to focus on the “small” wins like this in order to keep the faith with the bigger picture.

    Take care!

  29. Captain Dividend,

    Thanks! I’m really fortunate to be able to post updates like this on a regular basis. I’m doing my best to keep the train rolling.

    Congratulations on your October dividend income as well! Hitting almost $150 is very solid. Keep it up!

    Best wishes.

  30. Trader,

    Thanks! You’re right. I do love accomplishing the little goals, and improvements every single month really make me smile. I guess I just happen to find dividend growth investing tremendously exciting.

    I hope your journey is also treating you well.

    Cheers!

  31. DGM,

    Thanks for the continued support!

    Yeah, this is the first time I hit $3k in one year. That’s a great milestone. I’m super excited to finish the year strong, but I’m also still really proud of what I’ve done so far. Saving and investing is really rewarding.

    Congrats to you on all of your success thus far as well.

    Best wishes!

  32. DM,
    Awesome update. These posts are my favorites. It’s all about the dividend income. Definitely nice to see a rising portfolio value too, but ultimately all about the dividends. Way to go, and congrats on the solid month!
    Sincerely,
    Ian

  33. nice work. Looking forward to the “Watch List” post. Those are my favorites. Gets alot of good conversation going. Just bit on some LEG. Let me know your thoughts?
    -Jersey Jerry

  34. Ian,

    Thanks a ton. I really appreciate your kind words and support. 🙂

    I agree that when it comes right down to it it’s really all about the dividends. The dividends will be what pays my bills one day, not the portfolio value.

    I hope you’re doing well. 🙂

    Take care.

  35. Jersey Jerry,

    Hey, glad you like those posts. I haven’t done one in a while! I’ll put something together next week, I promise.

    I think you made a nice choice with LEG. The valuation isn’t crazy, and the yield is attractive. The revenue growth hasn’t been there, but EPS and net income has been growing nicely. The share count is down over the last few years. The only thing that isn’t impressive right now is the dividend growth, but that could change.

    Best wishes!

  36. SWAN,

    Thanks!

    You had a great month of October as well with the $132 in dividends. Keep up the great work! By the time you’re my age you’ll be far ahead of me.

    Cheers!

  37. My October was rather slow as well, but hey as you point out it is greater than last year’s. There’s quite a difference between September’s dividends and October’s. In FI these fluctuations won’t matter much because I will have a cash buffer to help me ride them out.

    Either way, I just love watching the dividends roll in. Right now the dividends I’m reinvesting are making a significant impact on my overall passive income.

    You know that one card in monopoly that shows the guy sitting back smoking a cigar? The card says something about dividends and he is clearly enjoying them. I think I will have an elarged version of that framed in my house somewhere!

  38. Dividend Mantra

    Nice job and total. Nice to watch that snowball pick up speed downhill!

  39. DM,

    You’re just right, 47% is very good for most people, I just commented to a buddy the other day how disappointed I was to have only saved 47% percent of my income for the month ‘you’re f’ing kidding, how can you be disappointed with that’. This is what happens when good behaviour becomes habit, your ‘habit’ is just normal behaviour for you but for others you seem to have ascended to a different level of being. We have been striving for 70% for our savings rate so I am always going to be disappointed when not hitting that goal. We will get better though, I am 100% certain of that and when we do it will be time to adjust the goal upwards.

    Great analogy too, jlcollinsnh mentioned something very similar, from memory it was something like ‘by shooting for the stars it is unlikely you will end up with a handful of mud’. I am not even sure by what age or when I will be capable of retiring. It looks like it could be about 5 years away just after my 30th birthday but if I fail and it ends up being when I am 32 I don’t think I will be ultimately too disappointed. I am currently enjoying work and life, I have good fun at work and enjoy the challenges and don’t mind the hours. Honestly I am no where near ready (emotionally/physically not financially) for retirement yet so I am happy to keep plugging away all whilst the dollars stack up.

    KM

  40. KM,

    You’re in a wonderful spot if you enjoy your work and the challenges it comes with. That’s really fantastic. I’m in a different situation where I loathe what I do for a living. The hours are brutal, the job is mostly thankless and on top of it all I have to deal with constant CSI scores where clients that aren’t particularly happy to see me (because they’re spending a lot of money to fix their expensive car) get to rate me on a scale from 1-10 (hint: 10’s are hard to come by).

    But, I’m getting out of it one day at a time.

    Great to hear that you’re enjoying your time while you build up the dollars. 🙂

    Best regards.

  41. Spoonman,

    Absolutely. The fluctuations won’t really matter much to those of us who are great at budgeting and able to acheive something as difficult and grand as financial independence. While I’d like to have less fluctuations in the monthly dividend tallies, that’s only because it “looks good on paper”. In reality, it matters nil.

    Haha. I love Monopoly. That was always my favorite game to play as a kid. But I loved to be ruthless, and my family pretty much refused to play with me. I think I do know what card you’re talking about – I think it was a ‘Chance’ card.

    I like the idea of getting that thing framed. I currently have my USA Today interview framed, but I think that would make a great companion. 🙂

    Best wishes.

  42. I enjoy your blog Many years ago I lived in 750 sq feet then 1300 sq feet then 2500 sq feet now 4500 sq feet we just as happy in the 750 sq feet. Even though the place is paid for it owns us endless yardwork dusting,cleaning ect. Now with my son getting married why do we need 5 bedrooms 4 baths you only can use one at time I think you might have the right idea.I love dividends as well Lots of little checks in my mailbox everymonth

  43. Anonymous,

    Thanks for stopping by!

    I appreciate your perspective. I have never desired to own a big house and all of the big upkeep it would come with. I think I just naturally prefer simple living, and so living below my means comes a bit natural. I look at a lot of material items and I just think that over time they would own me, instead of me owning them.

    Glad you enjoy those dividend checks! Not too many things in life I love more. 🙂

    Best regards.

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